Thursday, 16 June 2016

FIN 534 Week 11 Final Exam Part 2

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  • Question 1

    0 out of 2 points
    Which of the following is NOT normally regarded as being a good reason to establish an ESOP?
    Selected Answer:
    Incorrect 
    To enable the firm to borrow at a below-market interest rate.
    Correct Answer:
    Correct To make it easier to grant stock options to employees.
  • Question 2

    2 out of 2 points
    Which of the following is NOT normally regarded as being a barrier to hostile takeovers?
    Selected Answer:
    Correct 
    Abnormally high executive compensation.
    Correct Answer:
    Correct Abnormally high executive compensation.
  • Question 3

    2 out of 2 points
    Which of the following statements is correct?
    Selected Answer:
    Correct 
    If a company has an established clientele of investors who prefer a high dividend payout, and if management wants to keep stockholders happy, it should not follow the strict residual dividend policy.
    Correct Answer:
    Correct If a company has an established clientele of investors who prefer a high dividend payout, and if management wants to keep stockholders happy, it should not follow the strict residual dividend policy.
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